the cheap iphone is going to be a huge seller. apple has just 13.3% of global market share. the cheap iphone will allow them to compete vs. Samsung which has 30% of the smartphone market. apple could grow global marketshare to 20% with the cheaper iphone. apple should be moving up to 475-500 prior to the launch of the new iphone and then if it is a hit and apple announces other good new products, watch for them to hit 700 again by early next year. the apple funeral was announced too soon. people love the iphone, they just need to compete with samsung at more price points.
Nope. It needs to sell for less than $581, & will probably come in around $450, as per Marketwatch:
Steve Milunovich, an analyst with UBS, estimated that the average selling price of the 4 and the 4S was about $581.
“Some gains were in emerging markets thanks to the 4/4S, which reduced the ASP [average selling price] from $613 last quarter to $581 even before the mid-range phone ships,” Milunovich wrote in a note on Wednesday.
The argument is that if Apple wants to make even further inroads outside the U.S., it still needs to offer an even lower-cost iPhone...
Citigroup analyst Kevin Chang, who follows the supply chain, wrote in a note last week that he believes the low-cost iPhone will be plastic with the same display, touch screen, processor and memory content. However, he also noted that the low-cost iPhone is “unlikely to be cheap,” estimating the cost difference between the company’s next iPhone, which many are calling the iPhone 5S, and the cheap iPhone to be no more than $50.
“We estimate [the] wholesale price of [the] low-cost iPhone could be around $380 to $400, while the retail price is likely to be around $450,” Chang wrote. At those prices, Apple should be able to keep its gross margins in the range of 36%-37% of revenue.